Xiao Yaqing, the Minister of Industry and Information Technology of China, has pointed out that around 300 companies are making individual efforts to design and/or produce electric cars in the country. He said the government would provide incentives to those willing to restructure their businesses and merge with others.
Generous state subsidies on EVs prompted many businesses to try their luck at that market. Aside from major manufacturers, scores of smaller startup firms took up EV research and development. A single province to the north of Shanghai houses 30 such firms, some of which are already struggling or insolvent.
To remedy the situation, the authorities of China will call upon such companies to unite their efforts and resources. This should finally put some load on the existing industrial capacities, the use of which has been stalling at only 53% since 2020. Aside from that, a new legislation is being discussed that would set forth a minimum acceptable industrial load to incentivize directing most resources to existing technological centers.
The Wuling Hongguang EV featured in our gallery and the video here counts among China’s most popular battery cars, but generates near-zero profit for its manufacturer. Rather than reaping profits, the company prefers earning carbon dioxide credits to guarantee future sustainability.
